FG Exempts Sanitary Towels from VAT in 2025 Tax Reform — A Relief for Women

FG Exempts Sanitary Towels from VAT in 2025 Tax Reform

In a significant move aimed at improving menstrual equity, the Federal Government has announced the removal of Value-Added Tax (VAT) on locally manufactured sanitary towels, pads, and tampons. This change is part of the newly enacted Nigeria Tax Act signed by President Bola Tinubu as one of four tax reform bills on June 26, 2025, and is scheduled to take effect from January 1, 2026 TheCableNeusroom.

Under this reform, locally produced menstrual hygiene products join a select list of items that are fully exempted from VAT, including baby products, humanitarian goods, and assistive devices TheCable. The broader tax law overhaul reflects an effort to relieve financial pressure on essential goods, recognizing menstrual hygiene as a basic need.

Advocacy groups and women’s rights activists have long called for such tax relief, arguing that menstrual products are non-negotiable necessities. Although past exemptions, in earlier Finance Acts, had nominally removed VAT on pads, inflation and high production costs prevented price reductions. The new legislation, however, offers fresh hope that these items will become more affordable cablefoundation.orgTheCable.

Nevertheless, experts warn that VAT exemption alone may not significantly lower consumer prices, unless the broader economic environment also improves. Factors like electricity costs, import duties on raw materials, and inflation continue to heavily influence production costs cablefoundation.org. Meaningful price reductions will likely depend on support across supply chains and manufacturing inputs.

Still, this VAT exemption brings Nigeria in line with other countries that recognise menstrual hygiene products as essential items deserving of tax relief. It’s a tangible step toward addressing “period poverty” and making these fundamental health items more accessible to women and girls nationwide.